Review of planning considerations in Federal coal leasing

BLM LIBRARY

88022672

UNITED STATES
DEPARTMENT OF THE INTERIOR

REVIEW OF
PLANNING CONSIDERATIONS

IN
FEDERAL COAL LEASING

WASHINGTON, D.C.

July 9, 1984

-3>W

h

THE SECRETARY OF THE INTERIOR
WASHINGTON

ti

Honorable George Bush
President of the Senate
Washington, D.C. 20510

Dear Mr. President:

Bureau of Land Management

Library

Bldg. 50, Denver Federal Center

Denver, CO 80225

The Department of the Interior submits to the Congress its
comments on the Office of Technology Assessment's (OTA's) report,
"Environmental Protection in the Federal Coal Leasing Program."
This submission outlines the Department's proposed plans for
implementing program improvements in light of OTA's suggestions.
These plans were developed as a result of our independent review
of Department policies and procedures and our examination of
OTA's report. They supplement plans proposed in response to
recommendations by the Commission on Fair Market Value Policy For
Federal Coal Leasing.

The Department of the Interior, under the Mineral Leasing Act of
1920, has responsibility for leasing Federal coal lands. How-
ever, until 1960, there was little demand for Federal coal and
little leasing activity. In the 1960's, leasing increased sub-
stantially. In 1971, the Department suspended coal leasing
because it believed lands were being leased primarily for
speculation.

The 1971 moratorium was intended originally to last only a short
period of time, but it was not terminated until 1979 when the
Department issued regulations implementing the Federal Coal
Leasing Amendments Act of 1976. Leasing was not resumed until
January 1981. Between 1981 and September 1983, 14 regional coal
lease sales were held. These sales were deemed necessary to
further national security by reducing energy dependence and to
provide coal at competitive prices.

In response to guestions raised about environmental protection
provisions of the leasing program, Congress directed OTA, in the
Conference Report accompanying the Interior and Related Agencies
Appropriations Bill for FY 1984, to provide Congress with an
assessment of the program's ability to ensure the development of
coal leases in an environmentally compatible manner. This report
was provided to the Congress and the Department on May 24, 1984.

Congress also established the Commission on Fair Market Value
Policy to review and to recommend procedures to ensure receipt of
fair market value for Federal coal leases. This Commission

- 2 -

submitted its report to Congress on February 17, 1984. On
March 19, 1984, I transmitted to Congress my comments on that
report and a proposed blueprint for the operation of a revised
program.

In my transmittal letter of March 19, I concluded the Department
would consider:

(1) programmatic issues involving coal leasing procedures
to determine whether coal leasing should occur, to
calculate the amount of coal which should be leased,
and to conduct sales; and

(2) conduct of individual Departmental employees in spe-
cific completed leases, and the adequacy of
Departmental review of their conduct.

In my judgment, each issue required a separate and independent
review. The first portion of the programmatic review resulted in
the report provided to you on March 19, 1984. Proposals for
improved procedures made in the report are being implemented by
the Department in close consultation with Congress, State govern-
ments, and other interested groups.

The enclosed report results from the second portion of the pro-
grammatic review. As with the March 19th report, this report
will be released publicly; discussed extensively with Congress,
State governments, and other interested groups; and implemented
in close consultation with these groups.

Further, a review of the Office of the Inspector General's
investigation of allegations of questionable individual conduct
was submitted to the Chairman of the Senate Committee on Energy
and Natural Resources and the Interior Appropriations
Subcommittee, and the Chairmen of the House Committee on Interior
and Insular Affairs, and the Interior Appropriations
Subcommittees. A further review by the Deputy Under Secretary,
under the supervision of the Under Secretary, of individual
conduct is continuing. A report will be provided when that
review is complete.

Our review of the Department's proposed procedures, as well as
the report of the Commission and OTA, convinces me that soon we
may be able to proceed with a responsible program for leasing
Federal coal resources. I have directed that potential environ-
mental consequences resulting from implementation of procedures
proposed in this and our March 19th report be thoroughly studied
before final decisions are made. The Department seeks only to
lease those Federal coal lands which promote the national inter-
est and reduce foreign energy dependence while conserving total

als

- 3 -

energy resources and protecting the environment to the fullest
possible extent.

Proposed procedures set out in the report address 10 policy go
and options identified by OTA. These proposals will substan-
tially improve the program by increasing information available to
decisionmakers and by decentralizing the decision-making process.

The Bureau of Land Management (BLM) will develop guidelines and
standards assuring the adequacy of pre-sale data and analyses,
and will compile a comprehensive data base. Guidelines and
standards will include the application of "screens" and will
require analysis of the cumulative effects of coal leasing.
Lands which have little potential for coal leasing will be
dropped from consideration as early as possible in the process.

Procedures also will call for providing increased resource data
during the land use planning process. To the extent possible,
BLM will develop and apply threshold measures for evaluating
lands to determine whether they should be considered for coal
leasing. Additionally, procedures will provide that lands for
which there is inadequate data will be dropped from considera-
tion. Moreover, a better linkage will be developed between land
use planning and coal activity planning.

Proposed procedures will provide for decentralized decisionmaking
and increased public participation. The role of Regional Coal
Teams (RCTs) will, in consultation with States, be expanded. For
example, RCTs will be asked to make recommendations concerning
the adequacy and analysis of data, for which they will be pro-
vided with science advisors during a test period. The use of
science advisors will be evaluated and, if successful, RCTs may
elect to continue them.

Further, recommendations of RCTs will be accepted by the
Department unless there is clear reason not to do so. In cases
where a RCT's advice is not accepted, a written explanation of
the reason for nonacceptance will be provided.

Finally, public participation, with time for review and comment,
will be provided at every significant decision point in the
leasing process. Additionally, to increase public participation,
RCTs will be encouraged to use working groups, representative of
the interests within the region, wherever appropriate.

We believe these proposed procedures, combined with those pro-
posed in my March 19 Review of Federal Coal Leasing, will ensure
an effective, predictable, and stable leasing program which will

- 4 -

serve national interests. We hope to manage the program to
reduce environmental risk, to allow industry to plan confidently,
and to promote public confidence.

Sincerely,

William Clark
Enclosure

THE SECRETARY OF THE INTERIOR
WASHINGTON

Honorable Thomas P. O'Neill, Jr.
Speaker of the House of Representatives
Washington, D.C. 20515

Dear Mr. Speaker:

The Department of the Interior submits to the Congress its
comments on the Office of Technology Assessment's (OTA's) report,
"Environmental Protection in the Federal Coal Leasing Program."
This submission outlines the Department's proposed plans for
implementing program improvements in light of OTA's suggestions.
These plans were developed as a result of our independent review
of Department policies and procedures and our examination of
OTA's report. They supplement plans proposed in response to
recommendations by the Commission on Fair Market Value Policy For
Federal Coal Leasing.

The Department of the Interior, under the Mineral Leasing Act of
1920, has responsibility for leasing Federal coal lands. How-
ever, until 1960, there was little demand for Federal coal and
little leasing activity. In the 1960's, leasing increased sub-
stantially. In 1971, the Department suspended coal leasing
because it believed lands were being leased primarily for
speculation .

The 1971 moratorium was intended originally to last only a short
period of time, but it was not terminated until 1979 when the
Department issued regulations implementing the Federal Coal
Leasing Amendments Act of 1976. Leasing was not resumed until
January 1981. Between 1981 and September 1983, 14 regional coal
lease sales were held. These sales were deemed necessary to
further national security by reducing energy dependence and to
provide coal at competitive prices.

In response to questions raised about environmental protection
provisions of the leasing program, Congress directed OTA, in the
Conference Report accompanying the Interior and Related Agencies
Appropriations Bill for FY 1984, to provide Congress with an
assessment of the program's ability to ensure the development of
coal leases in an environmentally compatible manner. This report
was provided to the Congress and the Department on May 24, 1984.

Congress also established the Commission on Fair Market Value
Policy to review and to recommend procedures to ensure receipt of
fair market value for Federal coal leases. This Commission

- 2 -

submitted its report to Congress on February 17, 1984. On
March 19, 1984, I transmitted to Congress my comments on that
report and a proposed blueprint for the operation of a revised
program.

In my transmittal letter of March 19, I concluded the Department
would consider:

(1) programmatic issues involving coal leasing procedures
to determine whether coal leasing should occur, to
calculate the amount of coal which should be leased,
and to conduct sales; and

(2) conduct of individual Departmental employees in spe-
cific completed leases, and the adeguacy of
Departmental review of their conduct.

In my judgment, each issue reguired a separate and independent
review. The first portion of the programmatic review resulted in
the report provided to you on March 19, 1984. Proposals for
improved procedures made in the report are being implemented by
the Department in close consultation with Congress, State govern-
ments, and other interested groups.

The enclosed report results from the second portion of the pro-
grammatic review. As with the March 19th report, this report
will be released publicly; discussed extensively with Congress,
State governments, and other interested groups; and implemented
in close consultation with these groups.

Further, a review of the Office of the Inspector General's
investigation of allegations of guestionable individual conduct
was submitted to the Chairman of the Senate Committee on Energy
and Natural Resources and the Interior Appropriations
Subcommittee, and the Chairmen of the House Committee on Interior
and Insular Affairs, and the Interior Appropriations
Subcommittees. A further review by the Deputy Under Secretary,
under the supervision of the Under Secretary, of individual
conduct is continuing. A report will be provided when that
review is complete.

Our review of the Department's proposed procedures, as well as
the report of the Commission and OTA, convinces me that soon we
may be able to proceed with a responsible program for leasing
Federal coal resources. I have directed that potential environ-
mental conseguences resulting from implementation of procedures
proposed in this and our March 19th report be thoroughly studied
before final decisions are made. The Department seeks only to
lease those Federal coal lands which promote the national inter-
est and reduce foreign energy dependence while conserving total

- 3 -

energy resources and protecting the environment to the fullest
possible extent.

Proposed procedures set out in the report address 10 policy goals
and options identified by OTA. These proposals will substan-
tially improve the program by increasing information available to
decisionmakers and by decentralizing the decision-making process.

The Bureau of Land Management (BLM) will develop guidelines and
standards assuring the adequacy of pre-sale data and analyses,
and will compile a comprehensive data base. Guidelines and
standards will include the application of "screens" and will
require analysis of the cumulative effects of coal leasing.
Lands which have little potential for coal leasing will be
dropped from consideration as early as possible in the process.

Procedures also will call for providing increased resource data
during the land use planning process. To the extent possible,
BLM will develop and apply threshold measures for evaluating
lands to determine whether they should be considered for coal
leasing. Additionally, procedures will provide that lands for
which there is inadequate data will be dropped from considera-
tion. Moreover, a better linkage will be developed between land
use planning and coal activity planning.

Proposed procedures will provide for decentralized decisionmaking
and increased public participation. The role of Regional Coal
Teams ( RCTs ) will, in consultation with States, be expanded. For
example, RCTs will be asked to make recommendations concerning
the adequacy and analysis of data, for which they will be pro-
vided with science advisors during a test period. The use of
science advisors will be evaluated and, if successful, RCTs may
elect to continue them.

Further, recommendations of RCTs will be accepted by the
Department unless there is clear reason not to do so. In cases
where a RCT's advice is not accepted, a written explanation of
the reason for nonacceptance will be provided.

Finally, public participation, with time for review and comment,
will be provided at every significant decision point in the
leasing process. Additionally, to increase public participation,
RCTs will be encouraged to use working groups, representative of
the interests within the region, wherever appropriate.

We believe these proposed procedures, combined with those pro-
posed in my March 19 Review of Federal Coal Leasing, will ensure
an effective, predictable, and stable leasing program which will

- 4 -

serve national interests. We hope to manage the program to
reduce environmental risk, to allow industry to plan confidently,
and to promote public confidence.

Sincerely,

ll^Q^L.

William Clark
Enclosure

UNITED STATES
DEPARTMENT OF THE INTERIOR

REVIEW OF
PLANNING CONSIDERATIONS

IN
FEDERAL COAL LEASING

WASHINGTON, D.C

July 9, 1984

INTRODUCTION

This report details the Department of the Interior's
plans for improving the operation of the Federal coal
management program. These plans were developed as a
result of Departmental review of the program and the
report of the Office of Technology Assessment (OTA),
"Environmental Protection in the Federal Coal Leasing
Program. "

The Department of the Interior, under the Mineral
Leasing Act of 1920, has responsibility for leasing
Federal coal lands. Until 1960, however, there was little
demand for Federal coal and, thus, little leasing
activity. In the 1960's leasing increased substantially.
In 1971, the Department imposed a moratorium on coal
leasing because it suspected lands were being leased
primarily for speculation.

Originally the 1971 moratorium was intended to last a
short period. However, it was not ended until 1979 when
the Department issued regulations implementing the Federal
Coal Leasing Amendments Act of 1976. Leasing was not
resumed until January 1981. Between 1981 and September
1983, 14 regional coal lease sales were held. These sales
were deemed necessary to further national security by
reducing foreign oil dependence and to provide coal at
competitive prices.

In response to questions raised about these sales,
Congress, in the Conference Report accompanying the
Interior and Related Agencies Appropriations Bill for
fiscal year 1984, directed OTA to assess whether the
program ensures development of coal leases in an
environmentally compatible manner. OTA ' s report was
provided to the Department on May 24, 1984. It contains
options in 10 areas that OTA believes will relieve
environmental concerns.

The proposed procedures set out in the Department's
review address the 10 policy goals and options identified
by OTA. These proposals will substantially improve the
program by increasing the information available to
decisionmakers and by decentralizing the decisionmaking
process .

Under these procedures, tracts will not be offered for
lease unless there is adequate information to assess the
value of the coal resource and the potential effects of
leasing on other resources. The Bureau of Land Management
(BLM) will develop standards and guidelines for the
adequacy of pre-sale data and analyses and will compile
more comprehensive data bases. The standards and
guidelines will include the application of screens and
will require an analysis of the cumulative effects of coal
leasing.

The procedures will call for the provision of
increased data during the land use planning process.
Lands that have little potential for coal leasing will be
dropped from consideration early in the process. To the
extent possible, BLM will develop and apply threshold
measures in evaluating lands to determine whether they
should receive further consideration for leasing. Lands
for which there is inadequate data will be dropped.
Moreover, an improved link will be developed between land
use planning and coal activity planning.

The proposed procedures also will decentralize
decisionmaking and increase public participation. The
role of the Regional Coal Teams (RCTs) will, in
consultation with the States, be expanded. RCTs will be
asked to make recommendations concerning the adequacy and
analysis of data. Further, on a test basis, the RCTs will
be provided with science advisors to assist them in
evaluating technical information. The RCTs may elect to
retain the science advisors if their assistance proves
beneficial. The RCTs also will be encouraged to use
working groups, representative of the interests within the
region, whenever appropriate.

The recommendations of the RCTs will be accepted by
the Department unless there is clear reason not to do so
If the RCT's advice is not accepted, a written rationale
will be provided to the RCT and to the public. Finally,
public participation, with ample time for review and
comment, will be provided at every significant decision
point in the leasing process.

The proposed procedures, combined with those proposed
in the Department's March 19, 1984 report, "Review of
Federal Coal Leasing," will ensure an effective,
predictable, and stable leasing program that will serve
national interest. Managing the program in a way that
reduces environmental risk, allows industry to plan
confidently, and promotes public confidence is one of the
Department's highest priorities.

Option 1: Reduce leasing rates

OTA recommended the Department establish lower, steady
coal leasing rates. It believed these leasing rates will
make the evaluation process more manageable, decrease the
probability of leasing environmentally sensitive tracts,
and improve planning. OTA also believed lower leasing
rates make it easier to evaluate the coal and other
resources involved and for industry and the affected
communities to participate in planning.

The Department agrees with these objectives and is
committed to developing coal leasing levels that will
enable it to receive a fair return consistent with
achievement of other public policy objectives, including
promoting efficient land use and environmental planning.
To reach these goals, the Department intends to
restructure its coal planning process. These changes are
described in Options 4, 5, and 6 of this report and in the
March 19, 1984, "Review of Federal Coal Leasing."

Under these new procedures the amount of coal to be
offered for lease will be based on a variety of factors.
Market conditions emphasized by the Commission on Fair
Market Value Policy will constitute one set of factors.
Environmental concerns emphasized by OTA constitute
another set. Both sets of factors will be weighed by the
RCTs in making their recommendations to the Department and
by the Department in making leasing level decisions.

In the lease sale decision process, environmental
factors will be considered in determining how many and
which tracts should be offered. As presented in more
detail under Option 6, the Department will address the
environmental consequences of leasing both on the specific
tract and on the surrounding area. Tracts for which there
is little expected interest and which have important
environmental values will be eliminated as early as
possible in the lease planning process.

The Department also will use smaller and more frequent
sales. These sales will enable BLM to gauge the market
better and to gather additional information for use in
subsequent coal leasing decisions.

Finally, OTA suggested increasing the period of time
and staff available to plan and support a lease sale would
increase the Department's ability to protect environmen-
tally sensitive tracts. As discussed in other section of
this report, the Department will improve the quantity and
quality of coal information available to it, enhance the
role of RCTs, and expand the opportunity for public
comment. These changes and previous changes made to the
land use planning process will add approximately 6 to 10
months to the time it takes to proceed from land use
planning through activity planning to leasing. The actual
time for the coal leasing process will be based largely on
RCT recommendations for the long-term schedule for coal
leasing. In recommending schedules, the RCTs will
consider the resources available and the magnitude of the
data gathering and analyses necessary to resolve issues
important to that round of regional coal leasing. This
additional time and the improvements made in staff access
to information will ensure a thorough analyses of
resources affected by coal mining.

Option 2: Decentralize decisionmaking authority

OTA concluded decisionmaking authority in the coal
leasing program was highly centralized. It suggested
decentralizing this authority would improve the
sensitivity of the program to State and local needs.
Further, OTA believed the Department sometimes has failed
to accept recommendations of the RCTs and this failure has
undermined predictability and stability in the program.
Hence, they recommended more authority be delegated to
RCTs and BLM State Directors.

The Department is fully committed to enhancing the
role of the RCTs and to incorporating their recommend-
ations into the decisionmaking process. In close
consultation with the States, the Department is redrafting
the Federal-State Coal Advisory Board Charter to reflect
changes in the RCT role. These changes are responsive to
the recommendations made by OTA and the Commission on Fair
Market Value Policy.

The changes, some of which were described in the
Department's March 19, 1984, "Review" will enhance the RCT
role in setting long-range schedules, increase the infor-
mation available to the RCTs, particularly regarding coal
market conditions and land use planning, improve public
participation, involve State personnel in preparing
material for RCT consideration, and increase the RCT ' s
authority to include consideration of land use planning
and relevant environmental concerns. Further, the draft
charter will specify that the Department will accept the
recommendations of the RCTs unless there is a clear reason
not to do so. If a recommendation is rejected the
Department will explain its reasoning in writing.

Also, to ensure more sensitivity to the concerns of
the State primarily involved, the BLM State Director for
that State will be named as chairman of the RCT. This
change will assure the team is headed by an individual who
is knowledgable about the needs of the State most directly
affected by the sale. The day-to-day activities of a
State Director involve balancing conflicting multiple-use
demands present in that State. Because of experience with
regional resource concerns, a State Director from within
the coal region will be more knowledgable about these
concerns than someone from outside the area.

The RCT's function will be expanded to include a
review of the adequacy of available information and the
quality of analysis. This review will be based on

As an alternative to increased delegation with
Secretarial review, OTA explored the possibility of
restructuring RCTs to give States majority
representation. The Department believes this option is
seriously flawed and unnecessary in light of the other
changes being made. As noted by OTA, this approach would
delegate important Federal management decisions concerning
Federal resources to the States and would be illegal.

OTA also suggested that the Department consider
expanding the voting membership of the RCTs or
establishing working groups on specific disciplines to
assure greater public participation. The Department
strongly supports the need for RCTs to ensure a broad
array of interests are represented in their delibera-
tions. In fact, the expanded role of RCTs makes the use
of such working groups even more important. The
Department will encourage RCTs to use working groups,
which include all segments within the community.

The Department, however, does not believe the RCTs
should be expanded beyond five voting members. The
increased responsibilities of the RCTs require that they
not become unwieldly and that all members devote a
significant amount of their time to RCT activities.

OTA also suggested that the Department reorganize the
leasing regions along State lines. It believed this
change would improve the perception of sensitivity to
State needs. OTA maintained conflicts between States
would be eliminated and BLM's coordination would be
simplified. It concluded this restructuring would make
BLM's management of the program easier and more
predictable .

The Department does not believe this change would be
productive. It ignores the nature of the resource
involved and would, as noted by OTA, balkanize the
program. Moreover, a State-based RCT would still need to

consider different points of view. Conflicts exist
because of the nature of the issues with which the
Deparment must grapple and not because of the forum in
which they are discussed. These conflicts must be
recognized and discussed openly if the public is to have
confidence in the program.

Further, the existing coal regions more accurately
represent the geographic areas that have similar concerns
about the environmental, economic, and social effects of a
particular sale. Sharing information across State lines
in these regions should improve the quality of coal
leasing decisions and should encourage the States to work
closely on common problems related to coal leasing.

Option 3: Improve the effectiveness of public
participation

OTA stressed public acceptance of the coal leasing
program is contingent upon public awareness and
understanding, and requires extensive public involvement
in the planning and leasing processes. OTA, however,
noted there is a general lack of public understanding
about the program and attributed this lack to the
complexity of the program. Accordingly, it recommended
greater use of brochures, newsletters, and workshops and
more frequent use of RCT working groups.

OTA also believed frustration and challenges to
leasing decisions would be reduced, if not eliminated, by
making data and analyses which form the basis of coal
lease decisions more widely available. OTA recommended
adequate review time be provided after information is made
available and recommended public hearings and comment
periods on leasing levels, community concerns, and the
application of unsuitability criteria. Finally, OTA
recommended BLM make better use of information provided by
the public.

The Department agrees with OTA and believes public
participation early in the leasing process is crucial to
its acceptance. The Department has taken significant
action to improve public awareness, understanding, and
participation in the coal management program. Some of the
more recent steps include: extensive consultation with
Congress, State officials, and interested groups about the
proposals set out in the March 19, 1984 "Review";
development of educational video tapes and brochures on
the land use planning process for use by field offices;
increased use of newsletters and other mailings informing
the public about coal leasing within a region to solicit
public advice about specific planning efforts.

Moreover, sections of BLM's Planning Manual have been
revised based on comments from Governors and will be
provided to Governors, Indian Tribes, industry,
environmental groups, and other interested parties.
Finally, RCTs will be instructed to use representative
working groups to develop information for RCT
consideration .

10

There are at least five formal opportunities for
public comment in land use planning and an additional nine
opportunities in the activity planning process (see
table). At the beginning of both the land use and
activity planning processes, BLM will develop and release
calendars clearly identifying each point at which public
participation is encouraged. Supporting information
either will be included or clearly referenced in all
decision documents prepared in land use planning and in
the regional coal leasing process. These documents will
specify the nature of the decision and the key factors
leading to it. They also will contain an easily
understood summary.

In the land use planning process, the public will be
invited to participate at the initial step: the call for
coal and other resource information related to coal.
Also, under the resource management planning regulations,
public comment is required on the application of
unsuitability criteria during the public review of the
draft resource management plan (RMP) and the associated
environmental impact statement (EIS). For every plan,
including coal, regulations also require a public hearing
prior to approval if requested by any person having an
interest that may be adversely affected by the
implementation of that plan.

In addition, to ensure adequate public comment on the
application of unsuitability criteria, section 3420.1 of
the coal management program regulations will be amended to
invite public comment prior to the application of the
criteria to land use planning. A notice will announce
availability of maps and other information describing the
application process used.

Under the proposed coal lease activity planning
process the biennial DOE production goals projections,
previously used in the development of coal leasing
targets, will be incorporated within regional "market
analysis" forecasts generated by BLM ' s newly formed Office
of Mineral Policy Analysis and Program Coordination
(OMPAPC). Revised coal management program regulations
will require activity planning begin with a call for an
RCT meeting to review both the OMPAPC market analysis and
a summary of previous land use planning data and
decisions. The call will announce the meeting and the
availability of the market analysis report and summary
information at least 45 days prior to the meeting date.

11

The Department recognizes adequate time must be
allowed for review of Departmental information and
formulation of public comments on important decision
documents. BLM Manuals and regulations will explicitly
identify the minimum timeframes for public comments.
Requests for public review of a document either in land
use planning or activity planning will have a comment
period of at least 30 days. For example, in land use
planning 90 days are provided for review and comment on
the draft RMP document and its associated EIS. In the
activity planning phase, a 60-day period is provided for
public review and comment on the draft EIS.

12
Representative Table of Timeframes and Planning Activities

Elapsed Time
( in months )

Range

0

3 — 4

5 — 7

5 — 18

8 — 24

10 -- 28

13 -- 33

14 -- 35

17 — 38

20 ~ 43

21 — 46

22 — 47
24 — 513

Major Steps in Federal Land Use and
Coal Lease Activity Planning

Land Use Planning (RMP)1

Significant

Public
Par ticipation'

Activity

Notice of intent published
including call for coal
information and other resource
information related to coal.

Identification of issues.

Planning criteria developed.

Inventory data supplemented.

Analysis of management situation.

Alternatives formulated and
selected for detailed study.

Effects of alternatives
estimated .

Preferred alternative selected,
draft plan and draft EIS
publ ished .

Public Review of draft plan and
draft EIS (opportunity for
public to comment on application
of unsui tability criteria).

Proposed plan and final EIS
prepared for publication;
Governor's review initiated.

Proposed plan and final EIS
published .

Protest period and Governor's
review completed.

Protest, if any, considered.

13

Elapsed Time Significant
( in months ) Public

Range Participation^ Activity

0 Plan approved by State Director

(lands acceptable for further
consideration for coal leasing
identified — prior public
review if any significant
changes resulted from Governor's
review or protest).

Activity Planning^

Approximate Significant

Elapsed Time Public
( Months ) Participation^ Activity

0 * Call for RCT meeting to identify

data gaps and issues to be
resolved, review market
analysis, and determine if
activity planning should be
initiated; notice that market
analysis is available to the
public .

1-1/2 * RCT meeting. If decision is

positive: issue calls for
expressions of leasing interest.

3-1/2 Complete calls for expressions

of interest, begin tract
delineation .

4-1/2 * Complete initial leasing level

paper; announce RCT meeting.
Paper available to public
through Federal Register notice;
call for comments.

6 * RCT meeting to review

expressions of interest; public
comments on initial leasing
level paper; make leasing level
recommendations; review tract
ranking factors.

8-1/2 Establish leasing level.

14

Approximate Significant
Elapsed Time Public
[Months ) Participation^- Activity

10-1/2 * Complete tract profiles; make

available to public for review
before RCT meeting.

12 * RCT meeting for tract ranking,

selection, EIS alternatives.

18 * Release draft EIS. 3egin 60-day

public comment period.

24 * Release final EIS. Market

analysis prepared, made
available. Notice of RCT
meeting and call for comments on
phased sales.

25-1/2 * RCT meeting for final

recommendations .

27 Secretarial consultations.

30 Complete Secretarial Issue

Document, including market
analysis and DOI review comments.

31 Final leasing decisions.

32 Final market analysis.

32-1/2 Decision to issue sale notice.

34 Sale (subject to Secretary's

decision ) .

■•■Schedule is for programming and budgetary purposes, time periods
vary by each region especially for data collection; some activities
overlap. Time periods for public comment are a minimum of 45 days.

2Public participation in either written, oral, or both forms and
includes involvement by other agencies, environmental and community
organizations, Indian Tribes, industry, and other interested groups.

3In land use planning, the BLM Director's target is to complete
RMPs within 24-30 months.

4Schedule assumes no regional activity will commence before land
use planning on all areas to be included is completed.

15

Option 4: Ensure comprehensive area planning is completed
before a lease offering

i OTA recommended the Department complete all relevant
resource management planning before beginning coal
activity planning for a lease sale. It stated this
planning is necessary to ensure land use planning
adequately supports informed tract selection decisions and
to incorporate preliminary cumulative impact assessments
in land use planning decisions. Hence, it urged comple-
tion of comprehensive RMPs and better coordination with
the Forest Service, other Federal agencies, and State and
local entities with planning responsibilities.

The Department agrees comprehensive land use planning
is necessary for sound activity planning. Moreover, it
agrees land use planning must be coordinated, not only
with other governmental bodies, but also v/ith interested
private organizations. The Department believes this
objective can be reached by expeditously completing RMPs
and by initiating new coal activity planning only in areas
where RMPs have been completed.

BLM started preparing land use plans in the
mid-1960's. These early planning efforts gradually
evolved into what became known as the "Management
Framework Planning" process, and. by 1970, BLM was
systematically preparing comprehensive multiple-use plans
for the public lands. By 1976, the year the Federal Land
Policy and Management Act (FLPMA) was enacted, several
hundred Management Framework Plans (MFPs) had been
prepared covering approximately 70 percent of the public
lands in the Lower 48 States.

ted

16

replacement of land use plans in effect on the date of
enactment. Rather, legislative history indicates that BLM
was to continue to use plans prepared before FLPMA. 1/

After FLPMA was enacted, BLM revised its land use
planning procedures to reflect more explicitly FLPMA
planning requirements and to comply with evolving National
Environmental Policy Act guidance. This revised planning
system became known as the "Resource Management Planning"
process. It was formally established by regulation in
1979. These regulations permitted BLM to continue to use
MFPs until superseded by RMPs if the existing plans were
in compliance with the principles of multiple use and
sustained yield and if they were developed with public
participation. The regulations also established
procedures for amending an MFP if a proposed action was
determined not to be in conformance with the approved plan

Also, in 1979, the Federal coal management program was
established. The coal management regulations permitted
BLM to use MFPs as the land use planning base for coal
activity planning if they met specified criteria and were
amended to cover the application of the unsuitability
criteria and surface owner consultation.

The 1979 regulations stated that after December 31,
1984, BLM would initiate coal activity planning only in
areas covered by a comprehensive land use plan or land use
analysis prepared pursuant to 43 CFR Part 1600. This
deadline, however, was deleted when the regulations were
revised in 1982.

The Department's 1979 decision to continue to rely on
existing plans, as supplemented, and the 1982 decision to
delete the 1984 deadline from the regulations has been of
concern to many. If, however, the Department had decided
in 1979 to delay the preparation of coal activity plans
until the next generation of land use plans were
completed, no competitive coal sales could have been held
until after 1986.

-L/The House Committee Report on FLPMA states: "The
Committee is well acquainted with the land use planning
systems of the Bureau of Land Management and the Forest
Service and has found them to be consistent in general
principles and practices with the objectives of [FLPMA]
H.R. Rep. No. 94-1163, 94th Cong., 2nd Sess. 5 (1976).

17

More importantly, there is little substantial
difference between the preparation of an RMP or an
amendment to an MFP which will bring it into compliance
with law. The same systematic process set forth in BLM ' s
planning regulations applies regardless of whether an RMP
or a plan amendment is prepared. Both are subject to the
same consultation and consistency requirements, the same
public participation requirements, and the same
documentation standards. For example, if coal is
involved, the same four screens (including the application
of the unsuitability criteria) are applied and the same
and use decisions must be made.

The Department recognizes, however, there may be data
inadequacies in some of its existing land use plans. BLM
is preparing new comprehensive land use plans as rapidly
as time and personnel permit. BLM ' s first RMP was
completed in 1983 and 23 more are scheduled to be
completed in fiscal year 1984. In total, approximately 50
RMPs are currently underway and will be completed within 2
to 3 years. However, because of the amount of work
involved BLM will be able to develop and maintain a
viable, comprehensive land use planning base only if it
prepares both plan amendments and new plans.

Also, the MFP planning base has been criticized
because it is often difficult to use. Some MFP
"decisions" were not well documented and the documents
that do exist are often not easily accessible to the
public. Further, because many MFPs were prepared for
relatively limited geographic areas, a "single" MFP
amendment often involves several MFPs. Moreover, these
MFPs may have been prepared by different planning teams
and at different times. To make the information more
accessible and useful, BLM will prepare a summary of the
decisions made in each MFP which is being used as the
basis for a coal leasing decision requiring public comment

The Department also concurs with OTA ' s suggestion that
it should take steps to improve coordination with other
Federal agencies, State and local governments and private
organizations. The enhancement of the role of the RCTs
should improve coordination. Further, a link will be
established through the RCT between the land use planning
process and coal activity planning. As part of this link,
the RCTs will consider coal leasing decisions in the
context of information developed as part of the land use

planning process. The RCTs will use existing land use
plans as a base to identify issues to be addressed and
data to be gathered as part of activity planning. This
link is described in more detail in response to Option 6.
Additionally, the Department will instruct BLM to take the
necessary steps to ensure better coordination between
itself and the Forest Service in the planning process.

19

Option 5: Develop a means of improving the data base and
access to it

OTA concluded data collected and analyzed by BLM
should be improved and suggested BLM investigate the kinds
of data collected by others involved in resource studies,
including Federal agencies, universities, research
organizations, mining companies, and local communities.
It also recommended a review of the amount and type of
data collected for each major step in the leasing
process. This review would focus on identifying the
appropriate data to be gathered and on better organizing
it to contribute to effective decisionmaking. Finally,
OTA concluded experienced BLM field personnel should be
encouraged to contribute to the greatest extent possible.

The Department agrees with OTA's recommendations.
Good data bases and proper analyses are essential to an
effective coal management program. BLM has already begun
work on many of the issues raised by this option and the
Department will continue to support these efforts. For
example, the Department has agreed that it should sponsor
more coal drilling and should encourage private-sector
coal drilling. This drilling will produce more timely
information regarding coal quantity and quality and will
enhance environmental analyses of coal leasing.

One of the most difficult steps in collecting and
making data accessible for the coal leasing process is
identification of the decisions that should be supported
by that data and analyses. Standards and guidelines will
be prepared by BLM to focus on data needed for decisions
essential to effective leasing, rather than on simply
gathering information.

BLM also is preparing supplemental program guidance to
resource personnel in the field regarding information
requirements for resource management planning decisions.
Items addressed in this guidance will include identifi-
cation of: 1) specific land use determinations (e.g.,
identify lands available for coal leasing, disposal,
grazing); 2) factors considered and documented in the
analysis process (e.g., application of the four screens to
identify lands acceptable for further consideration for
coal leasing); and 3) program-specific information
requirements. This guidance will be part of the 3LM
Manual and is scheduled to be completed by the end of 1984

20

Further, BLM will investigate other sources of data to
which it may gain access. For example, 3LM will explore
whether to require hydrologic and soil information in
return for permitting exploration drilling. This data is
important to the decisions made by BLM and could be
obtained from ongoing drilling operations. The expense of
collecting the information would be borne by the companies
that wish to lease the resource and, thus, are a prime
beneficiary of the information. The Department, however,
is concerned that additional requirements on exploratory
drilling could impose extra expenses and could reduce the
amount of exploratory drilling undertaken. Accordingly,
the Department is interested in comment on the likely
effect of the proposed requirement.

Other potentially valuable sources of available
information include mine plan permit applications and data
from operating mines. This information, however, can oe
difficult to retrieve. A BLM/Office of Surface Mining
Reclamation and Enforcement (OSM) working group will oe
asked to suggest ways to search, extract, and apply mine
plan data.

BLM also has a number of long-term initiatives
underway to develop comprehensive, easily accessible,
automated data systems. These include:

1) The Automated Lands and Minerals Record System
(ALMRS) which will provide information referenced
to geographical units on land ownership and
restrictions .

2) Geographical Inventory Systems that will directly
link resource data to maps.

3) An Ecological Site Inventory System that provides
soils and vegetative inventories and identifies
site potential based upon plant succession to a
climax stage.

4) An Integrated Habitat Inventory and Classification
System that delineates wildlife habitat areas and
provides for linking by computer of storage,
retrieval, and analysis of wildlife resource data.

Although progress has been made on these systems,
serious issues remain to be addressed. Some of the data

21

systems noted above are not interactive, limiting
opportunities for access and ready application to multiple
use planning and related coal decisions. Major effort and
investment will be required to refine and integrate these
systems to increase their availability and applications.
The Department agrees with the emphasis placed by OTA on
digital and computerized data sets, and BLM, through Oak
Ridge National Laboratory, is currently studying
appropriate ways in which to automate its data.

OTA recommended, as did the Commission on Fair Market
Value Policy, that BLM encourage experienced personnel to
remain in the field and contribute to regional analyses.
In the Department's review of the Commission's suggestions
about organization and management, several proposed
changes were presented, including new organizational
units, position descriptions, delegations of authority,
and the development of regional team office functions.
The Department will continue to seek to ensure a stable,
well-paid workforce that retains field personnel with
extensive regional experience.

22

Option 6: Provide meaningful guidelines and standards for
assessing the adequacy of the data base

OTA suggested the Department adopt standards and
guidelines for assessing adequacy of pre-sale data and
analysis. OTA believed standards and guidelines would
provide oetter guidance to Departmental employees and
would enhance the ability of the public to comment on coal
leasing issues .

The Department concurs with the need for standards and
guidelines for evaluating adequacy of data and for guiding
analysis. Accordingly, the Department will direct BLM, in
consultation with the Geological Survey, the Fish and
Wildlife Service, OSM, and other appropriate agencies to
develop standards for data adequacy and guidelines for
application of these standards. Draft standards and
guidelines will be distributed by BLM to the puolic for
comment .

Further, the chairman of each RCT , in consultation
with other members of the team, will appoint three science
advisors as e_x officio members of the RCT. One of the
science advisors will have an expertise in renewable
resources, another in non-renewable resources, and the
third in reclamation and mitigation techniques. They will
assist the RCT in evaluating the adequacy of the data
available to it and the analysis of that data. This step
will be taken on a test basis. If, after a suitable
evaluation period, the RCT believes these advisors serve a
useful function, the RCT can request they continue as ex
officio members.

The Department also will combine the call for coal
resource information, made at the beginning of the land
use planning process, with a call for other resource
information relevant to evaluating lands for potential
coal lease offering. This information and the information
in the BLM planning data bases will be used to eliminate
lands that are of little interest for development or that
have limited coal resources but that appear to pose a
large number of resource conflicts about which there is
limited data. This procedure will allow BLM to
concentrate its resources on tracts with a greater
liklihood of being offered for lease. Moreover, this
information will be helpful in evaluating surface
resources, particularly on split estate lands.

23

Additionally, to better integrate the land use and
coal activity planning processes, 3LM will provide RCTs
and the public a summary of the land use data and
evaluations made during land use planning. The area
covered by an RMP or amended MFP is much smaller than that
covered by a regional coal activity plan, and it generally
takes several RMPs to cover a coal leasing region. This
difference may lead to inconsistencies in the data between
planning areas within a single coal region. Thus, it may
complicate decisionmaking.

Use of this summary by the RCTs will integrate the two
processes. Before comprehensive land use plans are used
by the tract delineation teams in activity planning, they
will be considered as a group by the RCT. The sole
purpose of this consideration will be to identify
additional data requirements and unresolved issues to be
addressed as part of activity planning. Hence, the
information will: (1) provide the RCTs with a context in
which regional recommendations concerning coal leasing can
be made; (2) help ensure consistency within the region;
and, (3) assist in identifying possible cumulative effects
and regional issues to be addressed in the EIS.

The Department also will weigh the adequacy of
site-specific data in determining whether specific tracts
should continue to be considered for leasing. BLM will
expand tract profiles to include assessments of the coal
and other data available on each tract and of the
additional data, if any, needed for an adequate evaluation
of the tract. This information will then be used, under
guidelines established and published for comment by BLM,
in the RCT's ranking of potential tracts for inclusion in
the EIS. Therefore, tracts on which large amounts of
information must be developed will be ranked as less
desirable and tracts on which there is inadequate
information may be dropped from consideration entirely.

When the RCTs forward final tract selection
recommendations to the Department, they will separately
identify any tracts that were not recommended because the
information necessary for adequately assessing the tract
was unavailable. In making these determinations the RCTs
should consider only information that could be expected to
be available prior to the lease sale. Information that
could only be expected at the mine permitting stage should
not be considered. RCT recommendations will be considered

24

regardless of the EIS alternative in which the tract(s)
may have been placed and the effect of its deletion on the
recommended leasing level.

Additionally, to help ensure tracts that cannot be
mined in an environmentally compatible manner are not
carried forward into the leasing process, OSM will assist
BLM in the evaluation of data. This evaluation will
assure that the area, if leased, will have a high
probability of meeting the requirements of the Surface
Mining Control and Reclamation Act of 1977 (SMCRA).

These procedures will concentrate BLM resources and
effort on tracts with a higher potential to be offered for
lease. It also may provide industry with an incentive to
contribute information to assure tracts of interest to it
are not deleted.

25

Option 7: Incorporate cumulative impact assessments in
pre-sale planning decisions

OTA supported more cumulative impact analysis of coal
leasing in the early stages of land use planning. OTA
believed that as the process moves closer to the leasing
and permitting stages, it is progressively more oriented
toward stipulations and mitigation and less toward
deletion of lands. It concluded this tendency decreases
the sensitivity of the process to environmental concerns
because as more is known about the coal resource, the
probability of development increases, and its value tends
to overshadow the value of other resources.

OTA implied the perspective afforded by the land use
planning process is the appropriate stage to gauge
cumulative impacts. It argued an increased use of
threshold analysis on coal lands would increase the
quality of the plans. Therefore, it concluded threshold
analysis should be reinstated in the coal leasing
regulations .

The Department agrees with the desirability of
conducting cumulative analysis and threshold
identification. Not only is it important to analyze the
environmental, socio-economic, and other effects for
individual coal tracts, it also is important that the
total effect of mining operations over a large area be
assessed. Although the effect of an individual mining
operation may not be substantial, it may have a
substantial effect on the larger region when combined with
other operations.

Threshold identification has two basic parts: a)
identifying the threshold levels, and, b) together with
cumulative analysis, assessing whether the threshold
levels are likely to be exceeded.^./ Assessing factors

A/cumulative analysis emphasizes predicting amounts,
while threshold analysis emphasizes identifying limits.
Cumulative impact is the effect of the action under
consideration when combined with other actions; past,
present, and future. It includes the study of the
situation in which individual actions are collectively
significant over time. Threshold analysis identifies the
points or levels at or above which cumulative effects
become unacceptable.

26

with previously quantified thresholds is relatively
straightforward. For instance, air and water quality
standards set by law serve as mandatory threshold levels.
Air and water models, although imprecise, can predict
whether the levels are likely to be exceeded. Other
factors, such as socio-economic effects and ecological
considerations, which do not readily lend themselves
either to quantifiable threshold levels or to predictions
about whether the levels, once established, are likely to
be exceeded, are extremely difficult to analyze using this
approach .

Threshold identification is currently specified as a
consideration in land use planning. The 1983 planning
regulations retained critical threshold levels as a factor
to be considered in the "analysis of management
situation", a part of the land use planning process. BLM
Manual guidance distributed in 1984 defines "threshold
analysis" and "threshold level" and explains how to
include the concept in the land use planning process.

From 1979 to 1982 the threshold concept also was
included in the coal regulations. It was removed from the
regulations in 1982 because it was difficult to apply and
because it was a consideration in the land use planning
process .

This deletion apparently has caused considerable
confusion about the use of this analysis in land use
planning and coal activity planning, and about the
relationship between the analyses at these two steps.
Therefore, the Department will reinstate this
consideration in its coal leasing regulations.

RCTs will consider any threshold analysis performed
during land use planning in its review of the cumulative
effect of coal leasing on the region and will expand this
analysis, where appropriate, to the broader area. BLM
will work with other organizations to refine this concept
and will make any new policies available to the public for
comment. •

This analysis will complement the existing
requirements for consideration of cumulative effects and
threshold identification. For example, the National
Environmental Policy Act of 1969 (NEPA) regulations
include a definition of cumulative impact and require all

27

EIS's to include an analysis of cumulative actions and
cumulatively significant effects. Accordingly, EISs
prepared during the activity planning stage (the "regional
coal EIS") contain an analysis of the cumulative impacts
of the coal leasing alternatives.

Further, informal threshold determinations have been
made by BLM in several completed regional analyses. For
example, analysis of the Fort Union region predicted that
projected facilities associated with six tracts under
consideration would exceed North Dakota air quality
standards. North Dakota indicated it would resolve this
problem through the air quality permitting process.

A similar concern was expressed by OTA about the
application of "screens." The coal regulations,
describing general requirements for land use planning,
provide a screening procedure to identify areas acceptable
for further consideration for leasing. These screens are
for identifying: (1) coal lands without development
potential; (2) lands unsuitable for all or certain
stipulated methods of mining; (3) lands with resource
values of a locally important or unique nature not
included in the unsuitability criteria ("multiple land
use"); and (4) areas where a significant number of surface
owners have expressed a preference against mining.

OTA raised issues involving two of these screens and
their application. It reported the coal screen has been
criticized because it allows lands with a low development
potential to be carried forward. In response to Option 6,
the Department has decided to eliminate low- and
medium-development potential lands under certain
circumstances .

OTA also noted concern regarding changes in the
details of the application of the unsuitability screen.
BLM will evaluate its experience with these changes and
report on the need for revisions. The evaluation will
include an opportunity for interested parties to express
their concerns with changes in the unsuitability criteria
and to submit information on the effects of those changes.

28

OTA suggested that, generally, but not always, the
four screens should be applied sequentially from the top
down. The Department agrees except in cases where there
are indications that the application of later screens
earlier in the process would prove more efficient because
lands would be deleted from further consideration without
expending added resources.

29

Option 8: Establish policies and procedures for
environmental lease exchanges

OTA encouraged the Department to establish policies
and procedures for using lease exchanges to protect
environmentally sensitive tracts including those found to
be unminable after the lease has been granted. However,
OTA noted lease exchanges involve a relatively new
approach to coal resource management and require statutory
change if they are to be used widely.

OTA recommended the Department adopt more detailed
guidelines and procedures for effecting exchanges,
including environmental analyses, the use of bidding
rights in an exchange, the entities eligible to
participate in exchanges, and valuation procedures. OTA
believed that by providing improved guidelines, exchanges
could be accomplished more effectively during the land use
planning process thereby avoiding the need to amend these
plans .

Exchanges have been viewed more favorably in the last
5 years as a way to resolve environmental conflicts. As
the Department has gained experience with exchanges, it
has made some progress in handling the mechanics
involved. Nevertheless, exchanges are invariably
complicated by the fact that each exchange is unique.
Each involves different resource values, environmental
concerns, and socio-economic effects.

In its March 19, 1984, "Review of Federal Coal
Leasing," the Department committed to pursue the exchange
of Federal and non-Federal coal tracts in a vigorous, but
prudent manner. 3LM was directed to continue to pursue
and evaluate potential fee exchanges under section 206 of
FLPMA. In addition, BLM was directed to amend its
existing fee exchange policy for leasable and saleable
minerals specifically to add environmental conditions to
its list of factors to be considered in fee exchanges.

The Department, however, has developed only a general
framework within which to consider specific exchanges
because of the need to retain the flexibility to be
responsive to the differences in each exchange. It
recognizes there may be a need for more specific guidance
to assist its field personnel in making decisions and to

30

encourage informed public discussion. Thus, the
Department will direct a thorough review of the Land
Exchange Manual and, if necessary, provide more detailed
guidelines on the process of land and lease exchanges.

The Department also will explore, with Congress, the
possibility of providing the Secretary with general lease
exchange authority. An expansion of the Department's
authority to issue Federal coal leases in exchange for
other rights, accompanied by a programmatic evaluation of
exchanges, would help ensure these exchanges are done
equitably and in a way that promotes sound land
management. 3

-*The Department, however, remains strongly opposed to
the use of "monetary credits" including "bidding rights
to facilitate exchanges. These ill defined credits
obscure the budget implications of exchanges, create
confusion, and pose administrative difficulties.

31

Option 9: Evaluate policies and procedures for leasing on
split estate and checkerboard lands

OTA recognized split estate lands and checkerboard
tracts are difficult to manage. It argued private
ownership of the surface complicates planning and can
limit access to land for study purposes. Thus, it
recommended a thorough reexamination of the coal leasing
process on split estate and checkerboard lands and
advocated this review be carried out through an RCT
working group.

A similar conclusion was reached by the Commission on
Fair Market Value Policy. The Commission concluded
surface owner consent requirements should be studied and
that section 2c of the Mineral Leasing Act of 1920 should
be amended to allow a railroad or an affiliate to bid for
Federal coal under certain conditions.

The Department agrees these ownership patterns cause
land management problems. These patterns, however, are
primarily the result of existing legal relationships and
are difficult for the Department to address without
guidance from Congress.

The Department does not believe that a study of the
leasing process on checkerboard lands is needed at this
time. Rather, in accordance with the judgment made by the
Commission on Fair Market Value Policy, the Department
believes that section 2c of the Mineral Leasing Act of
1920 should be amended. This amendment would "unlock"
these lands and allow. them to be combined into logical
mining units, especially through cooperative leasing.

The Department also agrees with OTA and the Commission
on Fair Market Value Policy that a comprehensive
examination of surface owner consent issues is
worthwhile. These issues affect both the revenue received
by the Federal Government for its resources and the
ability of the Federal Government to plan for the best use
of public land. Surface owner consent issues, however,
result from existing law. Because of the close
relationship between the issues identified for study and
the legal requirements within which the program must
operate, the Department believes an RCT-sponsored study
would be of limited value. Rather, any further review of
these issues should be sponsored by Congress.

32

Option 10: Establish uniform procedures for environmental
evaluation of PRLAs

Both the Commission on Fair Market Value Policy and
OTA expressed concern regarding the processing of
Preference Right Lease Applications (PRLAs). OTA noted
the PRLA program does not require application of all
screens required for pre-lease planning and environmental
protection must be achieved largely through lease
stipulations and permit conditions. OTA also noted
establishing uniform procedures for environmental
evaluation of PRLAs would help improve the quality of the
evaluations, ensure consistency among regions, and provide
greater predictability.

OTA advocated an evaluation of the relationship
between the number of PRLAs in a region and the need for
new production tracts to meet regional leasing levels.
Their report further suggested processing of PRLAs be
included as an alternative to competitive leasing in
regional lease sale EISs and be subject to an independent
environmental assessment.

This position is consistent with the report by the
Commission on Fair Market Value Policy. The Commission
concluded the appraisal of the adequacy of coal leasing is
dependent upon the extent to which pending PRLAs are
granted. It recommended review of these applications be
completed rapidly and a priority be assigned to those
areas in which a lease sale is imminent.

The remaining 137. PRLAs are in many respects an
anomaly in the Federal coal management program. They
resulted from prospecting permits authorized under the
Mineral Leasing Act of 1920. The 1976 coal amendments
repealed the provision authorizing these permits subject
to valid existing rights. If the applicant is able to
demonstrate the tract covered by a valid PRLA application
contains commercial quantities of coal, the Federal
Government is legally required to issue the lease. In
determining whether commercial quantities exist, one of
the factors that must be taken into account is the costs
of complying with existing environmental laws and
regulations, and with lease stipulations.

33

Partly as a result of these statutory requirements and
partly in an effort to process the PRLAs as expeditiously
as possible, BLM generally was reviewing outstanding PRLAs
independently of the activity planning process for new
competitive coal lease tracts. As OTA noted, this review
has been a major source of conflict. Concerns were raised
in at least two related but nonetheless distinct areas:
1) the adequacy of the environmental analyses prepared by
BLM in conjunction with its processing of the PRLAs; and,
(2) the manner in which PRLAs have been reflected in the
Department's assessments of the need for new production
tracts .

The Department believes many of the NEPA-related
concerns raised with respect to BLM's processing of PRLAs
have been adequately addressed by BLM in its recent
instructions to field offices. Current guidance requires
the preparation of either a regional or site-specific EIS
for all but seven pending PRLAs. (The Environmental
Assessments on these PRLAs showed no EIS was necessary.)
It directs that each of these EISs contain: 1) an assess-
ment of alternative mitigation measures developed through
analysis of site-specific and cumulative impacts; 2) an
analysis of alternative lease terms for implementing
proposed mitigation measures; and 3) an analysis of
possible alternatives to lease issuance, including
exchange and compensation. All PRLA draft and final EISs
will be reviewed by the Washington Office to ensure
consistency among regions before they are printed and
filed with the Environmental Protection Agency.

BLM also will be directed to prepare monthly progress
reports beginning October 15, 1984, until all PRLAs are
processed. Reports will document the status of each PRLA
including compliance with all regulatory and procedural
requirements. In addition, for those PRLAs maturing to
coal leases, these reports will indicate the effect of
these new leases on the future need for competitive lease
sales and the role of this information in ongoing activity
planning .

These reports will be provided to the Federal-State
Coal Advisory Board and each RCT for use in establishing
coal leasing levels and will be made available upon
request to the public and Congress. As explained in the
Department's March 19, 1984, "Review," the RCTs will
consider the amount of coal to be leased and mined as a
result of those PRLAs which BLM expects to mature into
leases or which have matured.

Bureau of Land Management
eldg^O. Denver Federa! Center
Denver, CO 80225

r